Beer is an alcoholic beverage produced by the saccharification of starch and fermentation of the resulting sugar. The major types of beer include lager, ale, stout, and bock beer. Beer provides variety of health benefits such as reduced risk of cardiovascular diseases, improved bone health and it also aids weight loss.

The Beer market is estimated to be valued at US$ 821.36 Bn in 2023 and is expected to exhibit a CAGR of 3.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Global Beer Market Size is witnessing high growth globally. Changing consumer preferences towards unique flavors and varieties in beer is fueling demand for craft beer. According to Brewers Association, craft beer segment accounted for 24.1% of the US beer market volume in 2019. Rising number of small independent breweries experimenting with different ingredients such as fruits and spices to offer diversified flavors in beer are attracting consumers. Furthermore, growing popularity of beer tourism and craft experiences is also augmenting demand for craft beer. Expanding distribution channels such as online stores and exclusive craft beer bars are further supporting market growth. However, rising production costs due to surge in raw material prices may pose challenges for craft beer market.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is low in the beer market given the high capital requirements and the presence of established brands. Bargaining power of buyers: The bargaining power of buyers is high since beer is a commodity and consumers have many brand options to choose from. Bargaining power of suppliers: The bargaining power of suppliers is moderate as key raw materials like malt, hops, and water are available from a large number of suppliers globally. Threat of new substitutes: The threat from new substitutes like wine and spirits is moderate, but the preference for beer is driving volumes. Competitive rivalry: Intense competition exists among incumbent players.

SWOT Analysis

Strengths: Strong brand portfolio, global distribution network, and economies of scale.
Weaknesses: Heavy taxation, intense price wars, perception of beer as unhealthy.
Opportunities: Growth in emerging economies, premiumization, expansion in craft beers.
Threats: Stringent regulations, sustainability issues like water usage and plastic waste.

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